How To Invest $10k, $25k, or $50k In Real Estate

Congrats on saving a huge chunk of cash, whether that is $10k, $25k or $50k! That’s a big accomplishment. We know how hard it can be to save money when advertisers show up in every channel of your life. They flaunt the latest and greatest gadgets, toys, gear, trips, and more. It can be really hard to hold back on spending.

But you have grit and perseverance. You know that “future you” really wants to experience the freedom of passive income streams. So you stuck with your plan.

Now, it’s time to decide how to invest $10k, $25k or $50k. It’s probably waiting patiently in that high yield savings account You may also be wondering the best ways to invest your money or what you need to be thinking about as you start accruing larger sums of money to invest.

In this article, we’ll start by looking at where to start when you begin investing and think about how to invest your money. With this foundation, you’ll be able to better evaluate the best ways to invest. We’ll share our favorite investment ideas and the most popular ways to invest that we’ve seen in our community of financial freedom seekers.

How To Invest $10K

Investing your first $10k is a super exciting moment in your journey toward financial independence. However, if you’re new to investing, understanding just how to get that money to its final destination can be difficult to understand.

I should know. (Head drops with slight embarrassment with the memory of the story I’m about to tell.)

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When my husband and I decided to start investing (before we found real estate investing), we sat down with a family friend’s financial advisor who did the “work” of setting up a money market account and a traditional IRA for each of us within a major financial institution. We funded minimal amounts to get things rolling that day, but then promptly went back to our busy lives.

Fast forward a year or two when we had a bigger chunk of change to invest – like $10k – and that financial advisor was MIA. We’re talking no returned calls. I managed to navigate the website and even transfer our cash into those money market accounts. Win! (Or so I thought.)

Turns out I didn’t actually “allocate” my funds. In other words, I didn’t buy any stocks or index funds. My money sat in that account, doing nothing, for over a year until I figured out there was one more (super important) step.

I was dumbfounded (and pretty embarrassed).

So learning the full process of how to invest $10k is just as important as deciding where to invest $10k.

Step #1: What type of lifestyle or life-by-design do you want?

This isn’t a money question. Because investing isn’t really about money. Investing is a pathway to live our best lives. To leverage our passive income streams so that we can have freedom with our own time to pursue our big (and small) dreams.

Investing is a way to live life on your own terms. To live a life by design, spending each day doing exactly what you want.

It’s worth it to spend the time to really work through the following exercises (find more detailed descriptions here). The more you envision and define your ideal lifestyle, the easier it will be to take action in that direction. However, if you don’t have time, set a 5-minute timer and get some ideas on paper. You’ll be evolving this as you go.

  1. Reflect. List the things you love about your life today. Then, list the things you’d love to be a part of your life, but don’t currently exist. and what you desire for tomorrow. Let joy propel you forward.
  2. Envision. With that list of things you desire, write a description of your ideal day – from waking up to going to bed. Did you miss anything in your list that you now see yourself doing or having? You may also wish to detail an ideal day while on vacation, or doing something special that is on your list.
  3. Brainstorm. Begin looking at your “today” list and your “desire” list and brainstorm as many ideas as you can to make progress toward your ideal life. Do you need passive income? (We’ll talk more about how much below.) Do you need to move or change jobs? Do you need a puppy? You’ll start to even find ways to bring small elements of your ideal day into your life now.
  4. Build. Pick the top 3 ideas and begin working on one of them. Take small steps – whether that is educating yourself on how to invest passively in real estate syndications or revising your resume for a new job.
  5. Refine. As you shape and experiment with your ideas, keep track of their progress. If one isn’t yielding the expected results or doesn’t seem suitable, refine and iterate upon it. Consider alternatives or move on to the next idea on your list. Keep the momentum flowing.
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Come back to your responses from this as you evaluate the best ways to invest $10k, $25k or $50k.

Related Article: How To Start Living Life By Design, Today And Every Day